U.K. Adspend to Rise Despite Brexit Concerns

Advertising revenues in the U.K. are expected to rise by 4.6 percent in 2019, according to the latest Advertising Association/WARC Expenditure Report, despite uncertainty over Brexit.

U.K. ad revenues were up 5.1 percent in Q3 2018 to £5.6 billion ($7.4 billion), the strongest third quarter since 2015. For the full year, the Advertising Association and WARC expect 6-percent growth to reach revenues of £23.5 billion ($31 billion).

In 2019, internet advertising is forecast to increase by 9.8 percent (20.2 percent being mobile). TV is expected to remain flat after a 1.3 percent projected increase in 2018. VOD ad revenues are forecast to rise by 10.1 percent this year.

“U.K. advertising continues to perform strongly, now delivering its 21st straight quarter of growth and demonstrating the commitment of British advertisers to investing in the growth and success of their businesses,” said Stephen Woodford, chief executive at the Advertising Association. “As the clock ticks down to our departure from the EU, it is crucial the Government provides the certainty we are all seeking in business. We are predicting continued adspend growth of 4.6 percent in 2019 and an agreement with the EU that keeps disruption at a minimum and keeps trade and talent flowing will greatly help this growth. U.K. advertising is the best in the world and we need a deal that ensures we keep it that way.”

James McDonald, data editor at WARC, commented, “Our projection of 4.6 percent growth in the U.K.’s ad market this year is firmly based on a business-favorable outcome from the EU withdrawal agreement, and would mark a decade of continuous expansion since the last advertising recession. Further, a preliminary estimate of 6 percent growth in advertising investment last year represents a faster rate of expansion than was recorded in 2017, and is, therefore, indicative of an industry in rude health. This is particularly true in relation to digital ad formats, all of which are currently forecast to attract higher levels of investment in 2019.”